Yellow Card, the largest cryptocurrency exchange in Africa, has recently announced the integration of Circle's USDC on the Solana blockchain into its platform. This strategic decision by Yellow Card is aimed at leveraging the increasing popularity of stablecoins across Africa.

In an interview with Bloomberg, The CEO of Yellow Card, Chris Maurice revealed that stablecoins account for 95% of transaction volumes on its exchange. Subsequently, the exchange has partnered with Circle, issuers of USDC, and Tether, issuers of USDT to increase the adoption of stablecoins on the continent. It’s unsurprising that it is doubling down on its efforts.

African users are turning to stablecoins due to their lower volatility and increasing merchant settlement and remittance usage. According to blockchain analytics firm Chainalysis data, stablecoins account for 60% of crypto assets sent monthly across Sub-Saharan Africa between July 2022 and June 2023.

Yellow Card’s CMO, John Colson, stated in an official statement on the company's website, "If we compare crypto adoption in Africa to the West, we observe notable distinctions in customer needs and usage patterns. In the West, cryptocurrencies are predominantly utilized for investment and trading purposes, whereas in Africa, they serve as a safeguard against inflation and a means for facilitating cross-border payments. Many Africans prioritize stability, which stablecoins undeniably offer."

Yellow Card, which operates in 17 African countries, touts the positive impact of stablecoins on digital transformation and financial inclusion.

In their statement, the cryptocurrency exchange emphasized that partnering with Solana will effectively address blockchain networks' scalability and cost-related challenges, crucial factors in managing the escalating demand for stablecoins in Africa.

"We're excited to use the Solana network to bring the advantages of stablecoins and cryptocurrencies to African users," said Peter Mureu, Director of Marketing at Yellow Card. "Solana's fast transaction speeds and innovative approaches have played a pivotal role in driving stablecoin adoption across Africa while maintaining decentralization."